ANDOVER, Mass. - Mercury Systems Inc. (NASDAQ:MRCY), a company specializing in mission-critical processing solutions, has entered into a production agreement with defense contractor BlueHalo to provide technology for the U.S. Space Force's Satellite Communication Augmentation Resource (SCAR) program. The announcement was made today, marking a significant step in the deployment of advanced communications systems in space.
Under the terms of the agreement, Mercury Systems will supply BlueHalo with field-programmable gate array (FPGA)-based signal acquisition and digital beamforming solutions. These will be integrated into BlueHalo's BADGER system, which is a multi-band deployable ground communications system designed with re-configurable beamforming tiles for simplified mission operations.
The SCAR program, aimed at maintaining the United States' strategic advantage in the space domain, was awarded to BlueHalo by the Space Rapid Capabilities Office (SpRCO) with a contract valued at $1.4 billion in 2022. BlueHalo's BADGER system has already demonstrated its capabilities last Fall, successfully tracking targets and processing signals.
Mercury's role in this partnership involves delivering hardware based on its Quartz RFSoC and Navigator (ELI:NVGR)® Design Suite commercial product offerings. An initial contract award received from BlueHalo in 2023 has already seen Mercury providing hardware, and the new production agreement, finalized in January, will see further deliveries throughout 2024.
Jonathan Moneymaker, CEO of BlueHalo, commented on the agreement, emphasizing the importance of Mercury's signal processing hardware in ensuring the high performance of the BADGER system. He stated that this partnership marks the first entrance into high-rate manufacturing for BADGER.
Mercury Systems, headquartered in Andover, Massachusetts, serves over 300 programs in more than 35 countries. The company's Mercury Processing Platform is recognized for enabling customers to convert data into decisions rapidly and effectively.
The collaboration between Mercury Systems and BlueHalo represents a critical development in the U.S. Space Force's efforts to enhance its communications capabilities in space. This announcement is based on a press release statement from Mercury Systems Inc.
InvestingPro Insights
As Mercury Systems Inc. (NASDAQ:MRCY) secures its role in the SCAR program, InvestingPro data highlights some financial metrics that may be of interest to investors monitoring the company's performance. With a market capitalization of $1.63 billion, the company's financial health and market valuation are critical for stakeholders. Notably, Mercury Systems' revenue has experienced a decline of 10.48% over the last twelve months as of Q2 2024, which aligns with analysts' expectations of a sales decline in the current year.
The company's P/E ratio stands at -18.30, reflecting challenges in profitability, as further underscored by the adjusted P/E ratio of -23.14 for the same period. These figures resonate with InvestingPro Tips suggesting that net income is expected to drop this year, and analysts do not anticipate the company will be profitable this year. Furthermore, the stock has seen a significant downturn, with a six-month price total return of -28.08%.
On a more positive note, Mercury Systems does have liquid assets that exceed its short-term obligations, which could provide some financial stability amidst the anticipated challenges. For investors seeking a more in-depth analysis and additional InvestingPro Tips, there are 7 more tips available for Mercury Systems on InvestingPro. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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